Oil Pushing $60

[doh]

In the mean time keep passing the cost on!

 

[AMRCostUnit]

Oil broke $57 overnight up to $57.03

Unit

 

[canyonblue]

Oil hits record above $56

Sharper-than-expected drop in gasoline and heating oil inventories sends energy prices soaring.

March 16, 2005: 4:28 PM EST

NEW YORK (CNN/Money) - Oil prices hit a record high Wednesday after a report showed sharper-than-expected declines in gasoline and heating oil inventories.

Crude oil for April delivery jumped $1.41, or 2.6 percent, to close at $56.46 a barrel in New York, after reaching as high as $56.60 -- well above the previous record close of $55.17 set on Oct. 22 and the record trading high of $55.67 set on Oct. 25.

In London, Brent jumped 95 cents to a record of $54.80 in the final day of April contract trading.

Oil supplies rose last week while inventories for gasoline and distillate, which is used for heating, fell more than expected, the Energy Information Administration said in its weekly report Wednesday.

According to the report, gasoline stocks fell 2.9 million barrels to 221.4 million barrels. Analysts polled by Reuters had expected a drop of just 800,000 barrels. Distillate stocks fell 1.9 million barrels to 107.3 million barrels.

Crude stocks grew a little more than expectations by 2.6 million barrels to 305.2 million barrels.

The EIA also raised its forecast for 2005 global oil demand to 84.3 million barrels a day and said the growth in demand, especially in China and the U.S., is responsible for the current high prices.

"I think this price move has been justified," Phil Flynn, senior market analyst at Alaron Trading told CNN/Money. "Demand in the world will probably hit the highest level in 30 years this summer."

"I want to pat (the EIA) on the back for admitting it," he added.

In a news conference Wednesday, President Bush said he was "concerned about the price of energy" and its dampening effect on the economy.

"Demand is outracing supply and supplies are getting tight," Bush said.

On the heels of Bush's statements, the Senate voted, 51 to 49, to open up the possibility of drilling in the Arctic National Wildlife Refuge (ANWR) in northeastern Alaska.

The refuge, which is home to caribou, migratory birds and other species, may house billions of barrels of oil beneath the coastal plain, making it one of the oil industry's most desired prospects.

But environmentalists have been staunchly opposed, arguing that drilling would damage a pristine wilderness while oil reserves there may not actually be that great.

If Congress agrees on a budget, drilling in the refuge could begin as early as this year.

 

[Delville]

I'm not going to pretend to be an expert regarding the future price of oil and how best to handle it. What I have read recently regarding the issue, however, indicates that we have a significant problem on our hands. Here is a good link to read (pay special attention to the letter from the oil exploration person): http://www.technologyinvestor.com/login/2004/Mar15-05.php

 

[crudeoilpilot]

I like to bounce this off our people all the time. Why is it? My latest from a very smart engineer and geologist who happens to be in charge of exploration is; "we know the amount of oil reserves in the world are finite, duh and yes we do our best to find new ones. Some people, such as OPEC members usually do not meet their advertised outputs, usually by quite a margin. When they do go to peak production out of the ground, coorespondingly goes the recovery rate of the field." This controls a lot of the availlability issue of supply.

I really like this one for his honesty, "we will never see cheap gas again. In my opinion people are presently being weaned to what they will tolerate at the pump. This helps producers establish a new (high) Low for when they do lower the fuel prices and say hey look what we are doing."

"The bright side is there are a lot of old oil fields in this country that where produced with some very crude production techniques and with latest and greatest that we have available nowadays will produce some very substantial numbers. This holds true worldwide and all depends on who your friends are today as far as recovering them."

"Many qualified people including our department do believe the Athabaskan fields (tar sands) in Canada are the largest known reserves on the earth. Production cost are substantially higher due to the nature of the beast. It is mined similar to strip mining." I have seen these and is unbelievable how they do it. Production out of the area for one Major producer has been cut by 50% due to the loss of one their production towers due to a fire this winter of unknown origin.

What boggles me is nobody ever mentions ANWR, kind of like so what it's no big deal, yes it contains a lot of oil, but we already have enough on our plate business wise, when would we find the time.

I belive Exxon Mobile are the only people in place at the moment who would even begin to implement any action. Try to find a drilling rig right now, not to many sitting around.

Speculators are controlling high crude prices, but how long did we ignore that there was a huge energy deficit in this country and how long has it been since we tried to improve the infrastructure itself.

I am in the energy business and it a strange one. The overwhelming majority of people I meet and befriend in this business are honest and would love to see everyone benefit in and out of the business. Yet I have met some scrupulous people who would never let any thought of an integrity issue challenge their efforts to capitilize.

It costs money to produce and discover future resources, just like it costs money to operate an aircraft and invest in newer capital. I guess people here in the U.S. have always taken cheap oil and cheap travel as a given. Now they are rattled that there has been a surge in the area it hits them the most, ka-ching. I am not an economist at all but what is so hard about accepting the fact that you have to pass on some of your increased costs on to your customers?

 

[DDpaysoff]

Bear with, this is not my area of expertise. But, what about the Amadeus Basin in the northern territory of australia? What do some of you oil people know about that area and its prospects for oil. (MPET)

 

[crudeoilpilot]

It will probably cost me a Scotch or two but I'll ask.

 

[Devil Dawg]

It is sad that anyone smart enough to be a pilot can also be dumb enough to be a Lib.

 

[General Lee]

I am just salivating for a chunk of raw caribou or musk-oxin. And my life would be complete if I could wash it down with a cold frosty glass of crude! Why are we taking so long? Drill up there already!



Bye Bye--General Lee

 

[DDpaysoff]

Caribou is good. I like 'em bloody rare. Very lean and tasty. What the he11 is musk-oxin? If its meat, i'll eat it too. Just don't be ffin with no elephants or dolphins.